Article 3. Basis Of Tax For Title Insurers of California Revenue And Taxation Code >> Division 2. >> Part 7. >> Chapter 3. >> Article 3.

In the case of an insurer transacting title insurance in this State, the basis of the tax is, in respect to each year, all income upon business done in this State, except:
  (a) Interest and dividends.
  (b) Rents from real property.
  (c) Profits from the sale or other disposition of investments.
  (d) Income from investments.

"Investments," as used in Section 12231, includes property acquired by an insurer in the settlement or adjustment of claims against it but excludes investments in title plants and title records. Income derived directly or indirectly from the use of title plants and title records is included in the basis of the tax.